Governments worldwide have been weighing a variety of tariffs and retaliatory measures. Some of these duties have already gone into effect, others are on the negotiating table, and more are likely to be announced. This article takes a close look at the implications for company supply chains. Tariffs have historically been used to prop up domestic industries or protect them against subsidized foreign competitors. By increasing the price of imported goods, governments seek to encourage citizens to buy homemade products instead. However, this kind of industrial policy can result in higher prices for both domestically produced and imported goods, as well as retaliatory tariffs from governments abroad. Recently, governments has also used tariffs as leverage in negotiations on issues other than trade, such as border control, causing greater uncertainty. Whether they’re used for industrial policy or political leverage, tariffs can contribute to a government’s treasury. For example, such duties accounted for about 1.6% of US federal revenue in 2024. The average duty across all US imports hit a low of 1.2% in 2008, rising to 2.8% by 2022, according to the most recent comparable data, with individual tariffs rising as high as triple-digit percentages based on type of product and country of origin.
Tariffs represent only one of the many financial and logistical factors impacting companies’ supply chains. Other challenges include international logistics, currency fluctuations, overseas sales taxes (such as Europe’s value-added taxes), and official trade barriers (such as subsidies and customs procedures). Focusing on tariffs, the implications for supply chains include: 1. Business uncertainty 2. Shifts in sourcing 3. Increased costs 4. Decreased export competitiveness 5. Inventory challenges 6. Trade retaliation 7. Encouragement of domestic production 8. Bureaucratic burden
NetSuite can help companies navigate today’s volatile trade environment. NetSuite ERPNetSuite ERP and supply chain management softwaresupply chain management software give companies the visibility needed to understand costs associated with tariffs and their impact on the business. For example, staff can run a profit analysis of each import with a landed costs feature that breaks out tariffs and other expenses. AI capabilities help businesses run scenarios on alternative suppliers, products, and costs to find the best options, as well as help them evaluate the potential impacts of absorbing cost increases or passing them on to customers. Companies can also use the software to analyze their supply chain operations to find efficiencies that might offset at least part of the cost of new tariffs.
The outlook for international trade is clouded by heightened geopolitical tensions, as major trading nations exchange tit-for-tat tariffs and retaliatory measures. As the International Chamber of Commerce points out, companies urgently need predictability and certainty to plan investments, manage supply chains, and operate effectively in global markets. Amid the uncertainty, businesses can take steps to analyze their options, streamline their operations, and plan for multiple scenarios to maintain supply chain resilience.
This article originally appeared on the Oracle NetSuite website
As organizations work to bring greater predictability to an increasingly complex trade environment, technology plays a central role in enabling informed decisions and operational agility. For leaders evaluating how modern ERP and supply chain platforms support scenario planning and cost visibility, these conversations extend beyond the page. At the Enterprise Software Showcase 2026 in Austin, decision-makers will have the opportunity to engage directly with Oracle NetSuite and independent analysts to further explore how companies are navigating evolving tariffs and trade dynamics.
To continue the discussion around supply chain resilience and modern ERP strategy, participate in the Enterprise Software Showcase this February in Austin.
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